Since my March 28th post, Curtis James Jackson III, better known as rapper 50 Cent (“Jackson”), filed his sixteen-page, Court ordered explanation (“Disclosure”) regarding the differences between his original Schedules and Statement of Financial Affairs (“SOFA”) and his subsequent amendments.
In the Disclosure his attorneys state that “the true benchmark is whether the debtor’s intent to be transparent with creditors, responsive to their requests for information and willing to produce documents and information necessary to address concerns. Here, the debtor has overwhelmingly met his obligations in good faith.”
The majority of Jackson’s explanation appears to be based on the complexity his numerous business ventures and his (or his professionals) initial uncertainty over the ownership of certain property (including the Georgia condominium and all the automobiles), the value of his businesses, and the existence or status of numerous contracts by Jackson and his businesses.
According to the Disclosure the Georgia condominium was not owned by Jackson individually, but rather, by “3286 Northside Parkway, Unit 302, LLC,” a limited liability company wholly owned by Jackson. All of the automobiles original listed on the Schedules were not owned by Jackson individually but rather, by “In the Passing Lane, LLC,” also wholly owned by Jackson. The only vehicle that Jackson appears to own individually is a 2012 Bentley Mulsanne.
Jackson’s Amended Disclosure Statement and Plan, which outline his agreement with his largest creditors for payment of their claims, are due Monday. I’ll share more news on Jackson’s proposed happy ending next week.
Heather L. Ries is an attorney with the Financial Restructuring and Bankruptcy Department of the law firm of Fox Rothschild LLP. Heather focuses her practice in matters related to bankruptcy, creditors’ rights, commercial workout and foreclosure disputes, and commercial litigation. You can contact Heather at 561-804-4419 or email@example.com.